A Citizens Advice Bureau report, drawing on over 10,000 requests for assistance, revealed that individuals from diverse backgrounds are finding it difficult to cover essential living expenses.
Government policies or legal changes, such as benefit sanctions, stricter emergency housing requirements, and reductions in community services, had worsened the hardship.
“We are seeing people who may have young children or babies coming in, and they’re facing imminent homelessness, and they’re being told that they’re not eligible for emergency accommodation,” the bureau’s national policy advisor Louise May said.
She said this was sometimes because people were told they had brought on their own homelessness and therefore did not qualify for assistance under a government-introduced policy.
Social Development Minister Louise Upston acknowledged that many Kiwis have been struggling and emphasised that the government is committed to alleviating the cost-of-living pressures.
The report presented various case studies, such as one involving a father of a disabled child who was rapidly accumulating debt.
“Tegan is struggling with a large electricity bill because the heat pump broke down over winter, and the landlord refused to fix it, requiring Tegan to only use his own oil heater instead. The landlord told Tegan that if they are cold, they can move out,” the report said.
Work and Income determined he was ineligible for aid since he was making payments to the power company, averting any cutoff threat, and recommended he discontinue his car and contents insurance.
The Citizens Advice Bureau advocated for various enhancements, including prioritising food, housing, and utility security, along with a review of compliance penalties.
May noted that clients seeking help often dealt with multiple case managers or faced challenges reaching Work and Income by phone. She stressed the need for greater face-to-face interactions between Work and Income staff and clients to create rapport and gain a true understanding of their circumstances.